Dr Martens investor demands strategic review amid valuation concerns

Marathon Partners calls for iconic bootmaker to explore potential sale.

Dr Martens investor demands strategic review amid valuation concerns
Dr Martens DOCS

A leading shareholder is piling pressure on iconic British brand Dr Martens (LSE: DOCS) to weigh a potential sale, arguing the footwear company's market value has become disconnected from its true worth, according to Reuters.

New York investment firm Marathon Partners Equity Management, which owns around 5 million Dr Martens shares, has called on the boot maker to hire bankers and kickstart an immediate strategic review. In a letter to the board, Marathon's managing member Mario Cibelli said Dr Martens could fetch up to $2 billion from potential buyers - nearly double its current $1.1 billion market capitalisation.

Cibelli claimed Dr Martens' stalled earnings growth and plunging share price since going public have "decoupled its valuation from its intrinsic value." The prominent investor believes the chunky-soled boot brand famed for its yellow stitching would generate higher profits as a private company or part of a larger multi-brand group.

Dr Martens' shares closed over 3% higher on Wednesday after news of Marathon's demands emerged.


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